Variables that impact the cost of delivering SB 1004 palliative care services. Kathleen Kerr, BA Kerr Healthcare Analytics September 28, 2017
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1 Variables that impact the cost of delivering SB 1004 palliative care services Kathleen Kerr, BA Kerr Healthcare Analytics September 28, 2017
2 SB 1004 Palliative Care SB 1004 (Hernandez, Chapter 574, Statutes of 2014) requires the Department of Health Care Services (DHCS) to establish standards and provide technical assistance for Medi-Cal managed care plans to ensure delivery of palliative care services Palliative care consists of patient- and family-centered care that optimizes quality of life by anticipating, preventing, and treating suffering. Palliative care may be provided concurrently with curative care and does not require the beneficiary to have a life expectancy of six months or less. Policy documents, contact information for DHCS available at SB1004 web site: Revised implementation date: January 1, 2018 Information in this webinar reflects content of May 2017 draft APL 2
3 Building blocks for implementing community-based palliative care Estimating member/patient need Estimating costs for delivering services Evaluating current capacity for palliative care Developing a strategy to expand services Gauging and promoting sustainability and success Webinar slides and a recording will be distributed early next week 3
4 Achieving balance Scope of services / cost of delivery Payment amount Outcomes that justify investment 4
5 Topic #2 webinar objectives Review SB 1004 required services Appreciate service model and contract features that influence the cost of delivering care (for providers) Variables related to patient care Operational/administrative variables Consider strategies to promote alignment between payment and costs Consider issues that contribute to the quality of (new) payerprovider relationships Describe workshops that follow webinar 5
6 SB 1004 population General and disease specific criteria Qualifying diagnoses: COPD, advanced cancer, heart failure and advanced liver disease Evidence of advanced disease Patient and caregiver / family preferences See draft APL and DHCS web site for most recent policy documents 6
7 Eight required services 1. Advance Care Planning 2. PC Assessment & Consultation 3. Plan of Care 4. PC Team 5. Care Coordination 6. Pain and symptom management 7. Mental Health and Medical Social Services 8. Chaplain Services (24/7 telephonic support) See draft APL and DHCS web site for most recent policy documents 7
8 Advance care planning Advance care planning for beneficiaries enrolled in Medi- Cal palliative care under SB 1004 includes documented discussions between a physician or other qualified healthcare professional and a patient, family member, or legally-recognized decision-maker. Counseling that takes place during these discussions addresses, but is not limited to, advance directives, such as Physician Orders for Life- Sustaining Treatment forms. See draft APL and DHCS web site for most recent policy documents 8
9 PC Assessment and consultation The palliative care consultation aims to collect both routine medical data and additional personal information not regularly included in a medical history or Health Risk Assessment. During an initial and/or subsequent palliative care consultation or assessment, topics may include, but are not limited to: Treatment plans, including palliative care and curative care Pain and medicine side effects Emotional and social challenges Spiritual concerns Patient goals Advance directives, including POLST forms Legally recognized decision maker See draft APL and DHCS web site for most recent policy documents 9
10 Plan of care A plan of care should be developed with the engagement of the beneficiary and/or his or her representative(s) in its design. If a beneficiary already has a plan of care, that plan should be updated to reflect any changes resulting from the palliative care consultation or advance care planning discussion. A beneficiary s plan of care must include all authorized palliative care, including but not limited to pain and symptom management and curative care. See draft APL and DHCS web site for most recent policy documents 10
11 PC team The palliative care team is a group of individuals who work together to meet the physical, medical, psychosocial, emotional and spiritual needs of beneficiaries and their families and are able to assist in identifying sources of pain and discomfort of the beneficiary. This may include problems with breathing, fatigue, depression, anxiety, insomnia, bowel or bladder, dyspnea, nausea, etc. The palliative care team will also address other issues such as medication services and allied health. The team members must provide all authorized palliative care. DHCS recommends that the palliative care team includes, but is not limited to, a doctor of medicine or osteopathy (Primary Care Provider if MD or DO), a registered nurse, licensed vocational nurse or nurse practitioner (Primary Care Provider if NP), a social worker, and a chaplain. See draft APL and DHCS web site for most recent policy documents 11
12 Care coordination A member of the palliative care team should provide coordination of care, ensure continuous assessment of the beneficiary s needs, and implement the plan of care. See draft APL and DHCS web site for most recent policy documents 12
13 Pain and symptom management Adequate pain and symptom management is an essential component of palliative care. Prescription drugs, physical therapy and other medically necessary services may be needed to address beneficiary pain and other symptoms. The beneficiary s plan of care must include all services authorized for pain and symptom management. See draft APL and DHCS web site for most recent policy documents 13
14 Mental health and medical social services Counseling and social services must be available to the beneficiary to assist in minimizing the stress and psychological problems that arise from a serious illness, related conditions, and the dying process. Counseling services facilitated by the palliative care team may include, but are not limited to: psychotherapy, bereavement counseling, medical social services, and discharge planning as appropriate. See draft APL and DHCS web site for most recent policy documents 14
15 Chaplain services DHCS recommends that MCPs provide access to chaplain services as part of the palliative care team. See draft APL and DHCS web site for most recent policy documents 15
16 Settings and providers MCPs may authorize palliative care to be provided in a variety of settings, including, but not limited to, inpatient, outpatient, or community-based settings. MCPs must utilize qualified providers for palliative care based on the setting and needs of a beneficiary so long as the MCP ensures that its providers comply with existing Medi- Cal contracts and/or APLs. DHCS recommends that MCPs use providers with current palliative care training and/or certification to conduct palliative care consultations or assessments. MCPs may contract with hospitals, long-term care facilities, clinics, hospice agencies, home health agencies, and other types of community-based providers that include licensed clinical staff with experience and /or training in palliative care. See draft APL and DHCS web site for most recent policy documents 16
17 The what is specified, the how is not Staffing model Frequency / types of encounters Process for verifying eligibility Documentation and communication requirements Billing processes Authorization processes 17
18 Specific services, several possible providers Required Service Advance Care Planning Palliative Care Assessment and Consultation Care Coordination Possible providers Could be done by MD/DO, NP/PA, nurse, social worker, chaplain or trained lay person Could be done by nurse/social worker team, or might require input from physician, nurse, social worker and chaplain Could be MD/DO, NP/PA, nurse, or social worker; could be facilitated by case manager employed by health plan 18
19 Variables that drive costs Cost components Direct care effort Operational costs Indirect costs Cost drivers PC population and care environment Provider organization characteristics and resources Payer policies, preferences and resources Some cost drivers are fixed and some reflect choices (issues that can be negotiated between the payer and provider) 19
20 Interdependency of variables that contribute to direct care costs Patient population attributes that impact model/effort (poverty, isolation, mental health needs, addiction, language, etc.) Patient selection/acuity Eligibility criteria Disenrollment criteria Scope Services from PC team Services from partners Volume Number of eligible patients Number referred and accepting services Model Care modalities Interdisciplinary staffing Care team effort/costs Frequency of contacts by modality/discipline Length of contacts Travel time Charting and communication/coordination work IDT meeting time Other organizational costs Mileage / transportation costs Eligibility verification effort
21 Know your costs, and which are modifiable Working within the parameters of SB1004 policy and APL Account for time / resources required to deliver direct patient care, as well as operational factors that will generate effort/costs Which costs are fixed? What choices are available to your payer-provider partnership to increase efficiency / reduce resource burden while maintaining quality? 21
22 Drivers and decision points Population Need for interpreter services, and which type of services used Scope Which services the PC team will provide Expected collaboration with other organizations, including the health plan Model Disciplines on the team Frequency of providing different types of services, by discipline, by modality / setting (clinic/office, vs patient home, vs telephone/video) Strategy for ensuring 24/7 access (triage service, leverage hospice staff, pay staff call), if you will provide this Care team communication effort Frequency of IDT and other internal provider organization meetings Presence/frequency of meetings with external organizations (participate in clinic rounds, health plan case management meetings, etc.) 22
23 Drivers and decision points Operational factors Effort required to screen, enroll and dis-enroll patients DC criteria impact need for on-going authorizations and probability of some enrolled patients experiencing periods of stability Lots of screened patients who are ineligible = lots of uncompensated effort for provider organization Strategies for promoting referrals (impacts expected number patients referred, case finding effort by PC org) Strategies used to orient/engage patients and families to the PC service Effort required to gather and submit data needed for payer case review/on-going authorization for services/severity rating Effort required to secure authorizations for DME, medication re-fills etc. (single point of contact in plan, or chasing PCP to get permission?) Metrics required to report to plan and proportion that are not simple extractions from EHR Process for submitting claims; provider and payer billing infrastructure 23
24 Variables implications - options Patient or program characteristic Target population is complex: mental health issues, poverty, substance abuse, linguistic diversity, etc. What this may mean for your services and costs Frequent visits Intense case management Broad set of services required Team needs behavioral health training Options Collaborate with other organizations that have separate funding streams Negotiate with payer to provide case management support Hire bilingual staff to reduce need for interpreter services 24
25 Variables implications - options Patient or program characteristic Considerable effort required to secure authorizations for DME, prescription approvals, refills, etc. What this may mean for your services and costs Ties up clinical staff on the phone Options Negotiate exception to some rules while patients are enrolled in PC Identify single point of contact at plan or within medical group to handle such requests 25
26 Start-up / ramp-up costs Gap between revenues and salary costs while building referral base Developing (new) workflows, developing data collection strategies Training new staff in palliative care 26
27 Learning from others California Health Care Foundation Payer-Provider Partnership initiative 6 teams of payer and provider organizations Providers: large academic medical centers, hospices, and a specialty palliative care practice Payers: national insurers, regional insurers, a Medicaid managed care plan 6 month planning process, yielding operational and financial plans for delivering CBPC 24 month implementation phase, where contracts were executed and clinical services were delivered Payers and providers who participated in the initiative identified lessons learned from developing and enacting an agreement to deliver CBPC. 27
28 Three lesson areas 1. Initial engagement 2. Promoting appropriate referrals 3. Relationship issues 28
29 Initial engagement Take the time (meet in person) Make sure there is a common understanding of. What palliative care is Goals / what hoping to achieve What success looks like Each organization s priorities and pressures 29
30 Promoting appropriate referrals Data mining vs provider referrals vs hybrid Creating and maintaining referring provider relationships 30
31 Relationship issues REALLY important (don t be the last to know) Aim for building trust and being flexible, not us vs. them Listening and transparency are valued highly Collaborative problem solving is valued highly 31
32 Key points APL specifies population, services, providers The (minimum) what is fixed; the how is up to you Costs will be driven by the population and care environment, provider resources/characteristics, and payer policies / preferences / resources Some cost drivers are fixed, but many are flexible; contract terms will reflect negotiated choices Know your costs and cost drivers and experiment with different choices if there is a gap between your expected effort / costs and payment offered Develop and nurture your payer-provider relationships 32
33 Topic #2 Workshops Content and approach More in-depth exploration of issues presented in webinar, case studies, worksheets Participatory with opportunities to share strategies and experiences; planning with colleagues Who should attend Individuals from provider organizations (teams of 1-4 people) with knowledge of administrative/fiscal operations, the needs of the target palliative care population, and the current or proposed care model, as well as individuals from payer organizations with an interest in the topic Offerings (registration open through noon Sep 29) Southern California on October 4 and 5 Northern California on October 25 and 27 If you want to register for a workshop please contact Glenda Pacha by noon Friday, September 29 at gpacha@chcf.org 33
34 Acknowledgements, and your questions Thanks to colleagues who shared their knowledge, wisdom and experiences Anne Kinderman, MD, Zuckerberg San Francisco General J Brian Cassel, PhD and the team working on the CAPC Accelerator initiative The payers and providers and project staff that participated in the CHCF Payer-Provider initiative Questions about the SB1004 Technical assistance series? Glenda Pacha gpacha@chcf.org Webinar slides and a recording will be distributed early next week 34
Kathleen Kerr, BA Kerr Healthcare Analytics July 18, 2017
Estimating the number of individuals eligible for SB1004 palliative care and appreciating baseline utilization patterns and costs toward the end of life Kathleen Kerr, BA Kerr Healthcare Analytics July
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